E-hail data reveal tough environment for taxi apps

Usage patterns over the first month that passengers could use e-hail apps to summon a taxi in New York City show that some of the concerns livery companies expressed in the run-up to the New York Taxi and Limousine Commission’s approval of the program were well-founded.

According to a report by the New York Times, in June, there were 117,000 ride requests made through apps made by the companies Uber and Hailo, but only about 17 percent of those requests resulted in an actual fare. That amounts to about one quarter of 1 percent of all taxi fares recorded during that period, the Times said.

The Wall Street Journal noted that much of the e-hail activity is occurring outside of Manhattan and during off-hours. It so happens those are places and times when livery companies -- which are separate from taxis and are not allowed to pick up street hails -- have made a good amount of money, the Journal said, and it appears yellow cabs are taking away some of that business thanks to the apps.